12 CFR § 1013.5 - Renegotiations, extensions, and assumptions.

---
identifier: "/us/cfr/t12/s1013.5"
source: "ecfr"
legal_status: "authoritative_unofficial"
title: "12 CFR § 1013.5 - Renegotiations, extensions, and assumptions."
title_number: 12
title_name: "Banks and Banking"
section_number: "1013.5"
section_name: "Renegotiations, extensions, and assumptions."
chapter_name: "CONSUMER FINANCIAL PROTECTION BUREAU"
part_number: "1013"
part_name: "CONSUMER LEASING (REGULATION M)"
positive_law: false
currency: "2026-04-05"
last_updated: "2026-04-05"
format_version: "1.1.0"
generator: "[email protected]"
authority: "15 U.S.C. 1604 and 1667f; Pub. L. 111-203 section 1100E, 124 Stat. 1376."
regulatory_source: "76 FR 78502, Dec. 19, 2011, unless otherwise noted."
cfr_part: "1013"
---


# 1013.5 Renegotiations, extensions, and assumptions.

(a) *Renegotiation.* A renegotiation occurs when a consumer lease subject to this part is satisfied and replaced by a new lease undertaken by the same consumer. A renegotiation requires new disclosures, except as provided in paragraph (d) of this section.

(b) *Extension.* An extension is a continuation, agreed to by the lessor and the lessee, of an existing consumer lease beyond the originally scheduled end of the lease term, except when the continuation is the result of a renegotiation. An extension that exceeds six months requires new disclosures, except as provided in paragraph (d) of this section.

(c) *Assumption.* New disclosures are not required when a consumer lease is assumed by another person, whether or not the lessor charges an assumption fee.

(d) *Exceptions.* New disclosures are not required for the following, even if they meet the definition of a renegotiation or an extension:

(1) A reduction in the rent charge;

(2) The deferment of one or more payments, whether or not a fee is charged;

(3) The extension of a lease for not more than six months on a month-to-month basis or otherwise;

(4) A substitution of leased property with property that has a substantially equivalent or greater economic value, provided no other lease terms are changed;

(5) The addition, deletion, or substitution of leased property in a multiple-item lease, provided the average periodic payment does not change by more than 25 percent; or

(6) An agreement resulting from a court proceeding.